Prices
January 27, 2022
HR Futures Down $200-$250, Busheling Futures Down $65 to Start ‘22
Written by David Feldstein
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active in the ferrous derivatives space since 2012.
The CME HRC futures curve has been slapped around like Shemp in January. The March future has been hardest hit falling $251 so far in 2022. April (-$232), May (-$230) and June (-$189) follow March’s decline and the result has been a steep flattening of the curve. The curve’s backwardation has collapsed along with the price. The spread between March and July was $242 on New Year’s Eve and closed earlier today at $106. The spreads between April and May and April and June have fallen from as high as $80 and $150, respectively, to $20 and $50.
